Wednesday, August 22, 2012

Chidambaram wants builders to lower prices

With the Finance minister officially calling the top in housing prices is there any investor willing to stick in their neck out and buy at the peak

Economic times reports 

 FM wants builders to lower prices of unsold houses 

MUMBAI: P Chidambaram, the newly-appointed finance minister, has asked chiefs of government-owned banks to put pressure on real estate developers to lower property prices in order to get the economy moving. In a meeting held last Saturday with bank chiefs, the finance minister told bankers to impress upon builders the need to complete projects according to schedule and lower the prices of apartments that are ready for possession but not getting sold. 

"Builders are sitting on huge inventories (unsold apartments) which they are neither able to sell at the prevailing prices nor are they allowing others to buy by lowering the prices," a banker present at the meeting quoted Chidambaram as saying.

Full article here


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